USD/CAD in a Strong Downtrend – Lower Channels Keep FormingUSD/CAD is currently in a strong bearish trend, forming a series of descending channels.
The price initially moved lower within a downward-sloping channel, then broke out to the upside, suggesting a reversal or deeper correction. However, this breakout was short-lived.
Instead of continuing higher, USD/CAD lost momentum and began forming a new descending channel, resuming its bearish movement. This pattern has repeated, each time the price breaks out upward, it quickly shifts back into a new downward channel, making lower lows each time.
This behavior indicates a bearish continuation structure, where temporary upward moves are corrective in nature and serve as setups for the next leg down. The consistent formation of new lower channels after brief pullbacks reflects ongoing selling pressure and trader sentiment favoring the downside.
